NIKE, Inc.

What they do

NIKE designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services globally. Products are sold through NIKE Direct (owned retail stores and digital platforms), wholesale accounts (independent distributors, licensees, sales representatives), and license agreements. Nearly all products are manufactured by independent contractors, mostly outside the US.

Revenue drivers

• NIKE Brand wholesale — Fiscal 2026 wholesale revenues were $27.5 billion, up 4% in Q4 reported, driven by North America growth, partially offset by Greater China declines.
• NIKE Direct — Q4 revenues were $4.1 billion, down 7% reported (down 9% currency-neutral), with NIKE Brand Digital down 12% and NIKE-owned stores down 7%.
• Converse — Q4 revenues were $244 million, down 32% reported (down 34% currency-neutral), with declines across all territories.

Recent performance

Fiscal 2026 full-year revenues were $46.4 billion, flat on a reported basis and down 2% currency-neutral. Fourth quarter revenues were $11.0 billion, down 1% reported (down 4% currency-neutral). Gross margin increased 890 basis points to 49.2%, including an approximate 900 basis point benefit from the expected recovery of IEEPA tariffs. Diluted EPS was $0.72 for Q4, including a $0.52 benefit from those tariffs. Full-year net income was $3.11 billion, down from $3.22 billion in fiscal 2025.

Strategy

Management states it is repositioning for long-term growth via a 'Sport Offense', focusing on team culture, innovative product, brand strength, and serving consumers in key countries and cities. It is managing the product portfolio, investing in marketplace elevation, and adjusting operating costs for efficiency. The company emphasizes improving profitability and scaling wins in performance product while navigating top-line headwinds.

Risks

• Demand softness — Management notes sell-through remains challenged, and top-line headwinds persist across most regions.
• Geographic concentration — Revenue declines in Greater China and EMEA were key drags in Q4 and full year, partially offset by North America growth.
• Tariff exposure — The recovery of IEEPA tariffs significantly boosted Q4 results, but any change in tariff policy or recovery timing could pressure future margins.
• Foreign exchange volatility — Currency fluctuations impact reported revenue and income; for the nine months ended February 28, 2026, translation had an unfavorable impact on income before taxes of $12 million.

Outlook

Management provided no explicit forward guidance in the provided excerpts. They indicated continued focus on consistent execution, improved profitability, and scaling wins. The operating environment remains challenging with top-line headwinds expected to continue.